Your employee's private use of the company car is a fringe benefit. And you MUST deduct PAYE on the value of the private kilometres, which the employee travels in the company car.

These private kilometres are the private use of the car, by the employee.

Here's how you would normally tax your employee's private use…

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How to make yourself invisible to SARS

The key to reducing how much tax you pay is staying off SARS' radar.

SARS has conducted R1.8 million audits. They've added 100s of new tax collectors and auditors to their payroll and each one has his own collection targets to meet. This means two things:

If you're not compliant, your chances of an audit this year have just doubled, and

You will pay more in penalties.

But there are 139 perfectly legal ways for you to make yourself invisible to SARS. Here's how…

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How to tax your employee's private use of the company car in four easy steps

These are the basic steps you must follow:

Step #1: Calculate the value of the fringe benefit. That's 3.5% of the determined value of the car, each month. For all the details on the determined value and how to calculate it, refer to the Practical Tax Handbook.

Step #2: Multiply the value of the car by the relevant fringe benefit percentage to get the monthly fringe benefit value.

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